Lawmaker pushes for ‘Chacha’ to boost foreign investments

A LAWMAKER from Cagayan de Oro City is pushing for the economic amendment in the Constitution through Charter Change (Chacha) to boost foreign direct investments in the country.

Representative Rufus Rodriguez of the city’s 2nd district said there is a need to lift the 60/40 ownership rule of local companies in the country.

Article XII of the 1987 Philippine Constitution prohibits foreign ownership of properties to only 40 percent.

Rodriguez said if the 40 percent prohibition will be increased up to 100 percent ownership, foreign direct investments (FDIs) would increase.

Rodriguez said the country has been lagging in terms of FDIs compared with its neighboring countries in Asia.

He said since 2010 to 2012, the country only has $6.3 billion FDI, while Thailand has $23 billion, Malaysia has $33 billion, Indonesia has $53 billion, and Singapore has P56 billion in 2012 alone, thus, ranking the Philippines the lowest in Asia.

Foreign investment in public utilities

To increase the FDIs in the country, Rodriguez said foreigners should be given the chance to invest in operations on public utilities like telecommunication companies, and airports.

He added that seaports and electric companies should also be open to foreign ownership.

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